Debt Arrangement Scheme (DAS)

What is a Debt Arrangement Scheme in Scotland?

It can help you if you are in debt by giving you time to pay and by stopping your creditors taking enforcement action. Creditors cannot block the scheme if it is fair and reasonable.

A debt payment programme (DPP) under DAS can include any debt you are personally liable (responsible) for, whether court action has been taken against you or not.

If you are a sole trader and have business debts, these can also be included.

Who is DAS not for?

DAS is not for everyone. You cannot apply for a DPP if:

• you are bankrupt or have signed a Trust Deed, or are subject to a bankruptcy restriction order or undertaking;
• you are paying debts under a conjoined arrestment order (with one exception); or
• you have no money to spare after you have paid your normal living expenses.

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How does DAS work?

If you think that DAS might help you, see a money adviser. All money advisers should be able to help you decide whether a DPP is the best option, though only DAS-approved money advisers can apply for a DPP for you.

Your money adviser will check how much money you can spare after you have paid your normal living expenses.

They will then try to set up the DPP with your creditors and apply to the DAS administrator (Accountant in Bankruptcy) for approval.

The DAS administrator (Accountant in Bankruptcy) is a civil servant in the Scottish Executive who oversees the whole scheme. Please note that DAS is not bankruptcy. A Sequestration is a bankruptcy procedure.

If the DPP is approved, it will be recorded on the public DAS register. You will make a single lump sum to a payments distributor, allocated by the DAS administrator, at agreed intervals (for example, weekly or monthly). The payments distributor will distribute this money to your creditors. This will carry on till you have paid off your debts in the DPP.

If your money situation changes, your money adviser can apply to the DAS administrator on your behalf to vary the DPP to take account of this. If you do not make payments or if you do not keep to any other agreement you made when signing the DPP application, your money adviser or any of your creditors can apply to have your DPP revoked by the DAS administrator.

Advantages of DAS

DAS offers a number of advantages:

• It stops creditors making you bankrupt or taking other steps to enforce payment.
• It protects your family home as long as you keep up any mortgage payments.
• It stops interest and charges on your account (but these can be reapplied if the DAS is revoked).

Disadvantages of DAS

• Entering a Debt Arrangement Scheme will negatively impact your credit score and therefore, your ability to access credit
• You will be restricted from taking on further debt during the term of the DAS
• If you fail to keep up with payments, the agreement will be terminated, and creditors may impose fees and interest

Who is DAS for?

You can only apply if:

• you live in Scotland (it doesn’t matter where your creditors are based);
• you have more than one debt; and
• you have some money to spare after paying your normal living expenses

Where can I go for help?

If you feel DAS may be appropriate for you, click here to contact us so that your nearest Begbies Traynor Group Adviser can contact you to arrange a no obligation initial interview.

Begbies Traynor Group is Scotland’s leading independent, business rescue and recovery specialist dealing with financial management and Personal Insolvency assignments of all kinds and is able to offer a personal and sympathetic approach to people’s financial problems.

With offices in Aberdeen, Dundee, Edinburgh and Glasgow you're never far from expert help and advice on your personal debt options. For more information about Debt Arrangement Schemes, visit our dedicated personal insolvency website Scotland Debt Solutions.

Complaints

We hope that you will be satisfied with the service that we provide, but we recognise that there may be occasions where you will not be satisfied with the way in which the matter has been dealt with. In those circumstances please refer to our Complaints Procedure.

For general information on dealing with personal debt, visit the Money Helper website.

Fees and Information

There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.